As supply chain challenges continue to impact the industry, the transportation sector has become an area of increasing importance for many companies. Looking to bolster its standing in the space, GrubMarket has announced the strategic acquisition of Oakland, California-based trucking and logistics services provider Oakport Transportation.
"Over the past few years, we've seen the stress on global logistics brought about by COVID-19. Moving perishable products around the country is complex and difficult and requires predictability and precision," noted Mike Xu, Chief Executive Officer of GrubMarket. "Oakport Transportation is a leader in providing high-quality transportation and logistics services. They are reliable and highly influential in the produce space, and we are excited for them to join the GrubMarket family. This acquisition enables GrubMarket to further strengthen our producer relationships on the West Coast, expand our internal fleets and warehouse capacity, and become a leader in transportation and logistics services for the underserved food producer and supplier market. Together, we will overcome the disruption plaguing the current supply chain and make a greater impact on the evolution and transformation of the American food supply chain industry."
GrubMarket will leverage the company's facilities and logistics networks to address supply chain challenges including trucking shortages, route congestion, and the booming consumer demand for fresh foods, according to a press release.
The timing of the acquisition is pivotal as the pandemic has created and exposed vulnerabilities in the supply chain system, impacting shipping routes, ports, warehouses, and trucking lines. Due to these issues, key transportation and logistics resources have spiked in cost, in some cases transferring to consumers. Oakport Transportation will provide GrubMarket with invaluable services such as load and LTL volume delivery, refrigerated storage for perishable goods, cross docking, and load consolidation to mitigate these price increases and challenges.
"We are excited to join the GrubMarket team and welcome the opportunities brought forth by GrubMarket's robust technology platform and network," said Sal Rizzo, Chief Executive Officer of Oakport Transportation. "We are constantly striving to be the most dependable trucking and logistics partner for our customers. We are thrilled to learn that GrubMarket shares this same goal. We sincerely look forward to joining the GrubMarket team and bringing more efficient, reliable, and cost-effective logistics services to GrubMarket's suppliers and end customers."
Following the completion of the acquisition, Oakport will continue to be managed by its current leadership team. Oakport's transportation and logistics offerings will then be integrated into GrubMarket's e-commerce and software product portfolio, which includes its proprietary WholesaleWare software suite, the company's software-as-a-service platform.
With this strategic play underway, how will GrubMarket continue to optimize the supply chain to ensure its success as a wholesaler? Keep reading Deli Market News to find out.